When the excitement and enjoyment of Christmas dies down, you might have a little time to think about the year ahead before we rush into it.
After all, there’s little point in complaining about how much you’ve spent this festive season, if you’re not even making an effort to do the minimum to get your money working better for you.
So, when you’re sick of eating turkey and watching Die Hard for the umpteenth time, why not take a little bit of time over the holidays to put some order on your finances?
Savings: Move them
There’s no doubt too many of us have too much of our savings on demand deposit, earning a pitiful return.
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So, this Christmas, take some time to put your savings to better use. Yes, returns may not be that amazing elsewhere – interest rates are still relatively low at a European level – but a better rate will still mean a better return.
Consider a deposit of €10,000. If you have this sort of rainy-day fund languishing in your current account, you’ll likely be earning between 0.01 per cent – 0.25 per cent on it at most, depending on your bank.
This means a return of as little as €1-€25 over the course of a year. And that’s before the Government takes a third of it in Dirt tax.
Time to take action then. Even one quick phone call/online transaction, could save you money.
For example, you can earn 2.26 per cent AER, or €455.10, over a two-year term with AIB (or €227.55 a year); 2.01 per cent a year over 10 years with State Savings, or €220 a year; 2.11 per cent with Bunq over a year; and 2 per cent with PTSB over one year, for a return of €200.
For better rates, you could also consider Raisin.com. It is offering a special three-month return of 3.1 per cent on amounts up to €100,000, for the first three months. After that, you can transfer your savings into one of the banks operating on its platform – some of the best deals include 3.05 per cent annually over seven years with Germany’s Aareal Bank; 2.81 per cent annually over three years with Latvia’s Rietumu Banka; and 2.41 per cent over one year with Spain’s A&G.
Remember, when allocating your money to a foreign bank account, there may be tax implications so bear this in mind and do your homework.
Also watch out for Avant Money’s options. It did a soft launch earlier this year, offering certain customers a six-month deposit product at a rate of 2.6 per cent. It expects to roll this out more widely in 2026.
You might also consider investing some of your savings for a better return. This can work well if you won’t need your money back in the short term. An index fund tracking the S&P 500 or a global funds portfolio can be a good way of dipping your toes in the water. In the year to December 15th, for example, the S&P 500 returned almost 16 per cent.
Health insurance: Make one phone call
Health insurance has been subject to a raft of increases this year from all providers. On top of this, the health insurance levy is due to increase by €48 per adult come next April.
So what can you do?
For Dermot Goode, of healthinsuranceireland.ie, it’s as simple as making just one phone call to your existing insurance company.
“Block out half an hour, have a big mug of coffee on the table beside you, don’t do any preparation but ask the right questions,” he advises, noting that trying to do comparisons online is “torture”.
“Fifty-sixty per cent of people will save by sticking with their own insurance company,” he adds.
So, get the insurers to do the hard work for you.
First of all, if you’re paying more than €2,500 per adult, you need a very specific reason as to why you’re doing so – this price level should cover most people’s needs.
“Say ‘my plan is too expensive and I want you to check all your plans and come back to me with similar plans’,” he says, adding, “never ask what do you recommend”. This is because it’s all but impossible to find identical cover at the same price – what you’re looking for is a similar plan.
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“And don’t be afraid to tell them your budget,” he says. “It cuts out the upselling.”
As an example, he cites Vhi’s AdvancedCare Extra day to day, which costs about €3,880 a year. By switching to AdvancedCare 50 Day to Day, you could save yourself about €1,000 a year.
What you will take on is some minor changes, such as a small excess, of €25 per day case procedure, or €50 on a semi-private admission, as well as changes to cover at the Mater Private.
“It’s about managed risk,” he says. Are you prepared to stomach some level of excess for significant savings, for example, or cover for a hospital you may never use?
“You need to be open-minded, and don’t be afraid to reduce cover slightly,” he says, asking them to detail exactly the differences between your current policy and the one you’re thinking of moving to.
“The trick is you must keep them on the phone,” he says, adding that if they suggest sending you out the details by email, “you’re back to square one”.
“Don’t hang up the phone till you’ve asked everything, and checked everything,” he says, adding: “Ask them to confirm there is no break in cover. Put all those concerns to them.”
If you’ve already renewed, don’t worry. Although this will preclude you from making changes with VHI (if the 14-day cooling off period has expired), there is nothing to stop you saving money now with the other providers.
“You can pretty much engage with them at any time,” says Goode.
If your employer pays for your policy, remember that you will be paying more in increases through benefit in kind – so maybe have a chat with HR about your options.
And, when adult children are at home this Christmas, he advises getting them to sit in on the call to help parents, particularly those who are more elderly.
Mortgage: Know your rate
What is the one thing most people never review but which is likely to be their largest financial commitment? According to Martina Hennessy, chief executive of doddl.ie, it’s their mortgage.
“Make 2026 the year you take control of your mortgage, know what interest rate you are paying and ask the question – can I save by switching my mortgage?” she says.
As Hennessy notes, the gap between the highest and lowest rate on the market is now a “huge” 3.15 percentage points, with the lowest rate on the market now starting at 3 per cent.
And there are also now 10 lenders in the Irish mortgage market to choose from.
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“This can result in savings of hundreds of thousands [of euro] for the average mortgage holder,” she says, adding that those who are saving big are homeowners who, as a result of recent property price inflation, are now eligible for lower loan-to-value rates.
“Anyone who has carried out home improvements and improved the building energy rating of their home may also be in a position to unlock some of the lowest rates on the market, green mortgage rates,” she advises.
And remember, switching is no longer as arduous a task as it once was, thanks to technology, with reduced document requirements and cashback offers.
Pension: Consider contributions
You don’t have to reinvent the wheel, but giving your pension even a little bit of attention can pay dividends. So find that password and log in to your pension account, or take that report out of the drawer in your kitchen.
First up, consider your contributions. Are you maximising contributions from your employer? For example, if they offer 6 per cent when you pay in 5 per cent of your salary, are you doing this? If not, can you afford to do so?
Leaving any employer contributions on the table is rarely a good idea and contributing may cost you less than you think, thanks to tax relief. For example, putting €200 into your pension will only cost you €120 in your pocket if you’re a higher-rate taxpayer.
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If you’re already meeting this, should you be contributing more? Typically, pension advisers suggest about 14 per cent of income to keep up your standard of living in retirement.
To decide this, take a look at the “statement of reasonable projection” in your pension report. This is going to tell you what income your current pot, plus future contributions, will generate.
If you’re not happy with the projection (and remember, this is a projection and your eventual fund might over- or underperform at retirement) you may need to think about how you can beef up your fund, maybe through making additional voluntary contributions (AVCs). Take a look at how much you can contribute and still benefit from tax relief here.
If married, you’ll need to think about pension savings in conjunction with your partners’ fund; if one partner is maxing out tax relief, for example, could savings be redirected to the other?
